Tri-Comic Company Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Υ1 Sales. $1,500,000 $1,250,000 Cost of goods sold. Gross profit... Selling expenses.... Administrative expenses. Total operating expenses Operating income.. Other revenue (510,000) $ 990,000 $ 270,000) (180,000) S (450,000) $ 540,000 60,000 $ 600,000 (450,000) 150,000 (475,000) $ 775,000 $ (200,000) (156 250) $ (356,250) $ 418,750 50.000 $ 468,750 (375,000) $ 93,750 .... ............ .............. Income before income tax expense.. Income tax expense. Net income ..
Tri-Comic Company Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Υ1 Sales. $1,500,000 $1,250,000 Cost of goods sold. Gross profit... Selling expenses.... Administrative expenses. Total operating expenses Operating income.. Other revenue (510,000) $ 990,000 $ 270,000) (180,000) S (450,000) $ 540,000 60,000 $ 600,000 (450,000) 150,000 (475,000) $ 775,000 $ (200,000) (156 250) $ (356,250) $ 418,750 50.000 $ 468,750 (375,000) $ 93,750 .... ............ .............. Income before income tax expense.. Income tax expense. Net income ..
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Vertical analysis of income statement
For 20Y2, Tri-Comic Company initiated a sales promotion campaign that included the expenditure of an additional $50,000 for advertising. At the end of the year, Lumi Neer, the president, is presented with the following condensed comparative income statement:
REFER IMAGE
Instructions
1. Prepare a comparative income statement for the two-year period, presenting an analysis of each item in relationship to sales for each of the years. (Round percentages to one decimal place.)
2. To the extent the data permit, comment on the significant relationships revealed by the vertical analysis prepared in (1).
Transcribed Image Text:Tri-Comic Company
Comparative Income Statement
For the Years Ended December 31, 20Y2 and 20Y1
20Y2
20Υ1
Sales.
$1,500,000
$1,250,000
Cost of goods sold.
Gross profit...
Selling expenses....
Administrative expenses.
Total operating expenses
Operating income..
Other revenue
(510,000)
$ 990,000
$ 270,000)
(180,000)
S (450,000)
$ 540,000
60,000
$ 600,000
(450,000)
150,000
(475,000)
$ 775,000
$ (200,000)
(156 250)
$ (356,250)
$ 418,750
50.000
$ 468,750
(375,000)
$ 93,750
....
............
..............
Income before income tax expense..
Income tax expense.
Net income ..
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